Table 2.2 -Julianne Runs a Business and Needs to Decide How Many

question 18

Multiple Choice

Table 2.2
-Julianne runs a business and needs to decide how many hours to stay open.Table 2.2 illustrates her marginal costs of staying open for each additional hour.Suppose that we observe Julianne staying open 3 hours per day.If she is following the marginal principle,what must her marginal benefit be?

• A) $12
• B) $16
• C) $18
• D) $24

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Definitions:

Capital

Capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery and buildings.

Prepaid Insurance Expense

The portion of insurance premiums that have been paid in advance and are recognized as an asset until the insurance coverage relates to future periods.

Advertising Expense

Costs incurred in promoting products or services to attract sales or increase brand awareness.

Medical Fees Earned

Medical Fees Earned refers to revenue generated by healthcare providers for services rendered to patients.